Mortgage to buy out a share in an apartment: TOP 10 banks and registration scheme

In modern Russia, few people can purchase housing without loans. The most common type of lending for the purchase of a home or share in an apartment is a mortgage. In this article, we will look in detail at the terms of a mortgage for a share in an apartment, for which share a mortgage loan is given, and for which share no bank will issue it. We will also tell you which 6 largest banks you can get a shared mortgage from and what conditions apply to them.

Types of shared ownership in Russia

The concept of shared ownership is defined in the Civil Code of the Russian Federation and implies the legally arisen right of two or more persons to property.

Depending on the circumstances, shared ownership is of 2 types:

1. Real estate is the common property of several persons

Common ownership is formed when an apartment is jointly owned by several people. The shares of each owner in this owner option are expressed as a percentage. For example, each spouse owns 1/2 of the apartment.

Common property includes property that was acquired jointly by spouses after registration of marriage, with the exception of cases where one of the spouses received as a gift or inherited this or that property.

2. Each share in real estate is private property

When property is divided into shares belonging to several owners, the property becomes shared. In this case, the shares can be equal or different. The distribution of shares depends on the agreement between the owners when purchasing housing, or on the personal contribution to the property of each of them. In this case, the size of the share is expressed in square meters and is clearly defined in the documents.

The simplest example is a communal apartment, when each owner can only use his part of the apartment. This may also be the inheritance of shares in an apartment by relatives of different orders, the acquisition of shares of different values, etc.

Primary requirements

For the average person, buying part of a house or apartment may seem like an irrelevant request, but such situations arise. And when the transaction brings benefits to the buyer or solves many of his housing problems, it is worth going to the lenders.

Let's consider the main reasons for obtaining a loan for a share of real estate:

• The client lives in a communal apartment.
• A couple is divorced and one of them is trying to obtain joint ownership of the property.

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Less often, the situation may turn out to be that a person is trying to buy part of an apartment without having anything to do with it. But such manipulations are usually not accepted in banks, so there will be a refusal.

In this case, the transaction will have to receive approval not only from the lender himself, but also from the owner of the part of the property being sold, as well as from the owners of other shares. And if one of the residents refuses, the bankers will not be able to help.

If there is a positive decision from all sides, the financial institution will consider the person’s housing situation from two angles:

1. Let's say a person already owns % of the area of ​​the apartment, and he wants to buy the rest. Such a borrower will definitely be approved for a loan if the property meets the bank’s requirements. Risks are reduced, because the payer will become the sole user of the meters.
2. Purchase of a share by a person without having rights to the remaining share. Here the lender may refuse, because it will be almost impossible to sell the collateral.

Bankers can always offer other options for the development of events. For example, resort to other lending programs: money secured by existing property (dacha, garage, car, apartment).

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But this method has its negative sides: to begin with, it is unreasonable to mortgage housing to purchase only part of the area; and secondly, not everyone owns something. The option of consumer lending is possible, but the term and amount may not suit the payer. And the interest rate on such loans is high.

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Features of shared mortgage

Banks are wary of issuing mortgages for the purchase of a share in property. Each individual request is considered individually. The bank makes a positive or negative decision after a thorough analysis of the situation proposed by the client.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

The liquidity of real estate shares is very low. It is difficult to sell, so banks do not want to accept such property as collateral. If you plan to buy a room in a communal apartment with a mortgage, the bank will take into account the year of construction, the dilapidation, and the state of disrepair of the building. In most cases, such housing is in disrepair, so banks do not issue a mortgage on it.

There are 4 common options when a borrower applies for a mortgage to purchase a share. In one case, the bank will most likely approve the loan, in the other, it will refuse. Let's figure out why this happens.

Mortgage for the last share

The easiest situation for a bank is to approve a mortgage for the last share. After purchasing the last share, the client becomes the full owner of the property, and the bank receives as collateral all the property in which the applicant acquired a share. If the borrower stops paying the mortgage, he will no longer put up for auction a share in the apartment, but its entire part. In this situation, the bank risks practically nothing and in most cases approves the mortgage.

When applying for a mortgage for the last share, banks soften the conditions so much that they offer a loan without guarantors and a down payment. The mortgage can be issued for a term of up to 25 years. In this case, not the purchased share, but the entire apartment will become collateral for the bank.

Mortgage loan for two people

When applying for a mortgage for two, you should consider the concept of a “co-borrower”. This is a person who assumes equal obligations with the applicant. Accordingly, the bank imposes the same solvency requirements on the co-borrower as on the main borrower.

If spouses take out a mortgage, then one of them will necessarily be a co-borrower. An exception is the situation when a marriage contract is concluded between spouses, which stipulates the conditions for one of them to renounce the right of ownership of the acquired share in the apartment.

Buying a share from relatives

Banks consider this type of mortgage to be a risk group. They rarely approve of transactions between close relatives and ex-spouses. Such transactions raise suspicion.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

After receiving the money, the relative returns it back to the borrower, who pays off the mortgage with these funds. Such actions often pursue one goal - to temporarily solve financial problems, pay off another loan, or close an overdue loan. The mortgage begins to be repaid, payments are made on time, but disagreements may arise between the parties to the transaction. This may result in delays or complete non-payment of the loan. This scheme is considered fraudulent.

Buying a room in a communal apartment

A separate situation is taking out a mortgage to purchase a room in a communal apartment. Although such a room is a separate object in shared property, it still falls under the strict conditions of shared lending.

How to buy a share in an apartment from close relatives using a mortgage

If it is necessary to buy out a relative’s share in an apartment, then it must be the last one. After payment, the housing should become full property.

Banks consider such loans as standard, since the entire apartment will be accepted as security for the loan and there will be no risk of claims from other owners.

It is impossible to buy out a share if there are several owners through a mortgage, since the bank will not issue a mortgage on part of the housing (real estate with low liquidity).

When the last share of the apartment has already been purchased, then, after permission from the Pension Fund, it is possible to compensate part of the mortgage costs with maternity capital.

List of documents that need to be submitted to the bank

Documents may vary from bank to bank, but the basic package remains the same:

1. Photocopy and original passport.
2. Spouse's passport, children's birth certificates.
3. Certificate of income from place of work, or certificate 2-NDFL.
4. A photocopy of the work record certified by the employer.
5. SNILS.
6. Consent of the spouse to carry out the transaction.

The seller of the share must submit the following documents to the bank:

1. Confirmation of ownership of the purchased share in the apartment.
2. Extract from the Unified State Register of Real Estate.
3. Technical data sheet with explanation.
4. House book or extract from it.
5. Consent of co-owners to sell shares.
6. Spouse's consent.
7. Estimation of the value of the share made in the current year.

Pros and cons of the deal

The main advantage is the price: a share is much cheaper than a separate apartment. You can subsequently sell your square meters and expand your living space.

Cons of the deal:

• the choice of real estate is limited;
• it is necessary to obtain the consent of all owners;
• you will have to live in the same territory with strangers;
• the property remains encumbered until the debt is fully repaid.

When buying a share in an apartment, a person must understand: housing issues are resolved with other owners. The main thing is to find adequate neighbors, then living together will be peaceful and comfortable.

Step-by-step scheme for obtaining a mortgage for a share

1. Contact the bank with a mortgage application and the necessary package of documents. Banks consider applications differently, but on average the decision-making procedure does not exceed 5 banking days.
2. The co-owners of the apartment write a waiver of the pre-emptive right to purchase the share. You will also need to confirm the fact that there is no relationship between them and the potential borrower.
3. The seller must provide the bank with a certificate of ownership or an extract from the Unified State Register of Real Estate. He must also have with him an extract from the house register, the spouse’s permission to sell the share, and other documents from the list above.
4. Conduct an assessment of housing for compliance with operating requirements. The bank is not interested in lending for the purchase of a share in dilapidated and dilapidated housing, as well as in an apartment regarding which there are pending legal disputes. They will not give a mortgage for a share if encumbrances are placed on the apartment.
5. Having received a positive decision, go to the bank to conclude a mortgage agreement.
6. Conclude a purchase and sale agreement and register it with the territorial office of Rosreestr.

It should be noted that banks often refuse to cooperate with the borrower on the basis of a power of attorney from the seller, without having the opportunity to personally communicate with him. Therefore, in order to avoid refusal of a mortgage, it is better to carry out all procedures personally with the seller without the presence of third parties.

Recommendations for borrowers

Large banks carefully check the housing they are lending. Lawyers evaluate all parameters and exclude the possibility of challenging the purchase and sale transaction in the future. However, the borrower will insure himself if he does not consider options for purchasing a share from a minor, an elderly person, or from a guardian of a temporarily incapacitated citizen.

In general, before entering into a contract, it is advisable to consult an independent lawyer specializing in mortgage issues. At the meeting, provide documentation for the purchased housing and a draft loan agreement for a specific bank. A specialized specialist will study the papers and point out the individual “pitfalls” of the transaction, which will allow you to make a rational and informed decision.

If it is impossible to obtain a positive decision on a mortgage, borrowers may be advised to apply for a consumer loan. Many of them now offer comparable promotional rates, up to 9.5%. In this case, you just need to confirm your solvency, and the bank will not care what you spend the money on. However, it will be impossible to use maternity capital for the purchase.

The solution for many young families is to involve their parents as co-borrowers, especially if they provide some property as collateral.

Underwater rocks

Any bank is interested in justifying its risks by obtaining ownership of the entire property, and not a share in it. This is not beneficial for banks, since it will be problematic to sell the share without taking into account the interests of the remaining co-owners.

Therefore, when contacting a bank to apply for a shared mortgage, you should consider several important aspects:

1. How many apartment owners are there on the day the application is submitted to the bank?
2. How many co-owners will remain after the client buys out the share or shares.

Why do banks primarily pay attention to the number of shares and their owners? This happens for one reason: the bank analyzes the situation for the future.

If the client does not have a single share in the apartment in question, and there are two or more co-owners, then the bank will take big risks by approving a mortgage on such conditions. In case of failure to comply with the terms of the loan, only the client’s share will become the bank’s property. Subsequently, it will be difficult to implement it without the consent of the remaining co-owners and their written waivers of the right of first refusal.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

Finding buyers for a share in an apartment where there are several co-owners is not easy. Why should a bank burden itself with these bureaucratic obstacles because of a small stake in real estate? It’s easier to refuse a loan.

The second risky situation for the bank is concluding a transaction to purchase a share between close relatives or former relatives who have not registered their marriage with other persons. Such transactions are perceived by banks as suspicious and have a high probability of being rejected for mortgage lending.

Which banks finance transactions between close relatives?

Individual consideration of complex transactions (which include “related” loans) can be afforded mainly by large banks with a large staff of lawyers and risk specialists.

List of major banks that are ready to consider applications for intrafamily mortgages in rubles (the best conditions for clients without benefits):

Banks not included in the list, as a rule, refuse to accept applications for a mortgage between relatives.

Minimum interest rates and maximum withdrawal amounts are provided to bank clients who receive constant income on their accounts (salaries or deposits).

Types of fines that increase the rate:

• failure to confirm the purpose of the loan;
• failure to confirm consent to change the insurance contract;
• failure to repay part of the loan if the transfer of funds for maternity capital was not made;
• absence or improper registration of insurance (the insurance company is not included in the bank’s trusted list);
• refusal to sign the mortgage agreement and register the pledge.

Types of benefits, including those that reduce the rate:

• participation in a salary project through a creditor bank;
• increasing the amount of the down payment;
• reducing the loan amount below the minimum level;
• possibility of attracting several co-borrowers.

Receipt procedure

How to buy part of a home? First you need to evaluate it and provide the bank with a complete package of documents about the future collateral. If the bank has no questions and can provide written consent to issue a loan, then you can transfer the deposit to the seller and sign a preliminary agreement.

The borrower needs:

1. Fill out the loan application form and provide all the necessary documents to the bank.
2. Get approval and evaluate the property.
3. Sign a loan agreement, and then a purchase and sale agreement with the seller of the share.

The entire process may take you from one to two weeks to a couple of months. The most difficult thing in this procedure is checking the legal purity of the transaction and obtaining the bank’s consent to issue a loan. Lenders are very wary of equity loans. This is not the most liquid collateral, and if you have to sell it with a problem loan, it may be very difficult to find a buyer.

According to the explanations of Rosreestr, when taking a mortgage on the last room in common property, you can register an encumbrance on the entire apartment. A share in real estate is insured in the same way as all other collateral premises. This will have to be done every year, simply by renewing the contract with the insurer.